Wealthy Europeans who have pushed up the price of luxury London homes in a bid to shield their wealth from the eurozone crisis could have been better off buying gold, according to estate agent Knight Frank.
They have helped push up the price of super-prime homes in the capital – those above £10m – by almost 40pc since the March 2009.
A respectable return considering interest rates at historic lows of 0.5pc and “substantial economic, financial and political challenges”.
However, gold in that time has risen 89pc to $1,786 a troy ounce and in gold terms the value of a luxury London home has plunged.
Liam Bailey, head of Residentail Research at Knight Frank, said: “In 2002 it would have taken you 24,000 ounces of gold to buy a super-prime mansion in SW1. A decade on, you would get change from 9,800 ounces.”